New Delhi: Shares of Welspun India rose by nearly 7% on Friday, halting its four days of consecutive decline on value-buying at lower levels.
The scrip, after a positive opening, gained 6.25% to Rs 57.80 on BSE. On NSE, shares of the company went up by 6.75% to Rs 57.70.
In the last four days, the company's scrip has declined by over 47%, wiping out Rs 4,867.3 crore from its market valuation.
US-based retail chain Bed Bath & Beyond is conducting third party audit of items sourced from Welspun India, joining the likes of Walmart and JCPenny following lapses in supplies by the Gujarat-based firm to the US-based Target.
Welspun India Managing Director Rajesh Mandawewala on Thursday told analysts in a conference call that the firm is in the process of appointing an external independent 'Big Four Auditor' to audit all of its supply systems and processes to understand the root cause.
Global retail majors Walmart and JCPenney are already investigating textiles sourced from Welspun India for product integrity, while IKEA is awaiting the outcome of a probe by the Indian firm in the wake of lapses in supplies.
Welspun, which was supplying bedsheets and pillowcases made of Egyptian cotton to Target, was alleged by the US-based retailer for substituting another type of non-Egyptian cotton when producing sheets supplied between August 2014 and July 2016.
Target has decided to terminate its contract with Welspun after an investigation.
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